Fresno County judge slashes millions from malpractice award for man with brain injury
A Kingsburg man’s nearly $50 million medical malpractice judgment against American Ambulance has been whittled to $17 million, a Fresno County Superior Court judge ruled.
Kaci Merlo on behalf of her husband Nicholas Merlo, a 39-year-old mortgage broker, who has remained in a persistent vegetative state for three years, successfully sued American Ambulance for gross negligence. The jury awarded the Merlos nearly $50 million on Oct. 5.
But lawyers for American Ambulance challenged the judgment, calling it excessive and unlawful.
A motion filed by the ambulance company’s lawyers said portions of the judgment violated a state statute that sets a limit of $250,000 for “non-economic losses” in medical malpractice cases. They also asked for a new trial.
In Merlo’s case, the jury awarded his wife, Kaci Merlo, $10 million for, among other things, “loss of her husband’s love, companionship, comfort, care, and assistance.”
Merlo was injured on March 14, 2018, after an American Ambulance paramedic tried to readjust his breathing tube and could not get it back in properly. Without enough oxygen, Merlo suffered cardiac arrest and a brain injury.
Judge Kristi Culver Kapetan, in a ruling issued Thursday, sliced the total judgment of nearly $50 million to $17 million, including knocking down the award to Kaci Merlo from $10 million to $250,000.
The judge did not grant the defendants a new trial. And a question remains as to how American Ambulance will pay the settlement.
Insurance ‘disputed’
Merlo’s lawyer, Warren Paboojian, of Baradat & Paboojian in Fresno, said American Ambulance’s insurance carrier, Covery, refuses to pay the judgment.
“They are claiming they only provided limited insurance coverage,” Paboojian said. “And they are leaving American Ambulance out to dry.”
Erik Peterson, the company’s chief administrative officer and staff counsel, said Friday that their coverage by the Boston-based Covery “is disputed.”
Peterson added that American Ambulance has “many options available” including an appeal.
“This process is far from over,” Peterson said.
A spokesperson for Covery said Friday: “It is company policy to not comment on active litigation or disputes that may result in litigation (including appeals), but that we honor our commitments to our insureds that are made via the terms of our insurance policies.”
This story was originally published December 18, 2021 at 5:00 AM.
